"CREDAI: Raising the Affordable Housing Cap from ₹45 Lakh to ₹80 Lakh Will Greatly Benefit Homebuyers."
Credai has also suggested to the govt that 1% GST be charged on under construction housing units priced between ₹75 and ₹80 lakh
Real estate body CREDAI, which is celebrating its 25th foundation day, has said the cap on affordable housing be increased from ₹45 lakh to ₹75- ₹80 lakh and suggested that 1% GST be charged on under construction housing units priced in the range of ₹75 to ₹80 lakh.
“The government should charge 1% GST on under-construction housing properties, costing up to ₹75-80 lakh each, to boost demand for affordable and mid-income housing,” Boman Irani, president, CREDAI told reporters, adding homebuyers will get benefit of lower GST if the affordable Housing definition is changed.
Currently, 1% GST is charged on under-construction affordable homes priced up to ₹45 lakh and those priced more than ₹45 lakh are taxed at 5%.
Irani said that the limit on affordable housing was capped at ₹45 lakh way back in 2017. There has been a significant increase in real estate prices since then and the limit needs to be revised upwards to ₹75-80 lakh.
Irani also said that the government may also consider doing away with the price cap on affordable housing altogether and consider only the carpet area of 60 metres in metros and 90 metres in non-metros.
CREDAIalso demanded that the government give a 100% deduction on interest paid on home loans under the Income Tax Act to boost demand for affordable and mid-income housing.